ENDOGENOUS JOB CONTACT NETWORKS

• 成果类型: Article
• 署名作者: Galeotti, Andrea; Merlino, Luca Paolo
• 署名单位: University of Essex; University of Vienna; Universite Libre de Bruxelles
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12087
• 发表日期: 2014
• 页码: 1201-1226
• 关键词: labor-market outcomes; information networks; social networks; search; MODEL

摘要

We develop a model where workers, anticipating the risk of becoming unemployed, invest in connections in order to access information about available jobs that other workers may have. The investment in connections is high when the job separation rate in the labor market is moderate, whereas it is low for either low or high levels of job separation rate. The equilibrium response of network investment to changes in the labor market conditions generates novel empirical predictions. In particular, the probability that a worker finds a new job via his connections increases in the separation rate when the separation rate is low, whereas it decreases when the separation rate is high. These predictions are supported by the empirical patterns that we document for the U.K. labor market.